News Channel Feud Lands In Court Fox Sues Time Warner Over Decision Not To Carry Channel
Rupert Murdoch’s News Corp. sued Time Warner Inc. Wednesday for allegedly violating antitrust laws and blocking its new Fox News Channel from appearing on its cable systems.
The lawsuit came just one day after the New York State attorney general’s office subpoenaed Time Warner to request documents. Sources confirmed the state was looking into whether the company violated antitrust laws by deciding not to run the Fox channel in New York State.
Fox has argued that Time Warner, the nation’s second-largest cable operator, violated an agreement to carry the Fox News Channel and put on competing MSNBC instead.
News Corp. announced the lawsuit by its Fox News subsidiary in a statement Tuesday from Arthur Siskind, its general counsel. Alice Chow, deputy clerk at the Federal District Court for the Eastern District of New York, confirmed it was filed Wednesday afternoon.
While the document was not immediately available, Siskind had said the suit would allege “antitrust violations, including an antitrust conspiracy, between Time Warner and Turner to block the Fox News Channel.” His statement only mentioned Time Warner’s cable in New York City, but Siskind said in a phone interview that it was prepared hastily and should have referred to all Time Warner’s cable systems.
“The lawsuit is utter foolishness,” Richard Parsons, president of Time Warner, said Tuesday through spokesman Edward Adler. He did not elaborate and Time Warner had no additional comment after the suit was filed.
The lawsuit, Siskind said, would seek a permanent injunction against Time Warner’s Inc. purchase of Turner Broadcasting System Inc.
He added, however, it does not seek a temporary restraining order, which if granted would block the deal immediately. A permanent injunction, he said, would force the deal to be undone if the lawsuit is successful.
Both Time Warner and Turner shareholders are set to vote on the merger today. Approval is widely expected, and the companies anticipate the purchase will be completed soon after.